Question
Chapter 9 (Carlin and Soskice, 2015) Q.4. In a small open economy, is a negative supply shock or a negative demand shock more damaging for
Chapter 9 (Carlin and Soskice, 2015)
Q.4. In a small open economy, is a negative supply shock or a negative demand shock more damaging for medium-run output?
Explain in words and use AD - ERU diagrams to back up your argument.
Describe the effects on the real wage, unemployment and the real exchange rate in medium-run equilibrium of an increase in unemployment
benefit.
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
134078802, 978-0134078809
